Appraisal Engagement Letter

Quick question:

We have someone independent of the loan ordering appraisals. In the appraisal engagement letter, can she state to contact the lender with questions, or does that compromise the independence?

Maybe a dumb question, but it's Friday, and I'm ready for a weekend!

Big compromise - they should contact the person sending the letter. Theoretically, there should be no contact between lender and the appraiser.

That's what I thought, thanks Randy.

I have been getting conflicting info. Can a person that works in the loan dept but does not make loans, order the appraisal. We have two levels of people in the dept (other than loan officers), those that work directly under a loan officer, documenting the loans etc. and those that have other duties such as checkback etc.

We are planning on having the second group order the appraisals. Would there be a problem with that? Would there be a problem with the loan officer assistants ordering appraisals?

I doubt you'd h ave a problem with you second-level folks handling, but I would not have the LOA handle it. That's too close to the loan officer, IMHO.